The 33 year-old is fully fit and available to coach Xabi Alonso.
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However, Xabi sees the veteran as only cover for his first-choice players and Alaba has been told playing chances will be limited this season.
Indeed, given Alaba is among the club's highest paid players, management would be happier to see him move on given Xabi views him only as a backup.
The veteran defender's contract at Real Madrid has less than a year to run.